Managing debt isn’t new for most of us. Whether it’s credit cards, personal loans, or other balances, it can all pile up quietly. Then one day, you realize that keeping track of multiple due dates, interest rates, and monthly payments is starting to feel like a full-time job.
For homeowners, this is now more relevant than ever. Interest rates are higher than they’ve been in years, and carrying a multitude of high-interest debts can put a serious strain on your monthly budget. Debt consolidation can potentially make things simpler – but remember, not all consolidation options are created equal.
What Debt Consolidation Really Means
At its simplest, debt consolidation is just rolling multiple debts into one. Instead of juggling several payments each month, you’re combining them under a single loan – ideally with a lower rate and a more manageable monthly payment.
It’s all about clarity and simplicity. You’re not erasing what you owe, but you are creating a setup that’s easier to manage on a monthly basis. For homeowners, having a clear plan that frees up some cash flow now can make a big difference in being able to plan for the future.
You don’t need a long list of debts to make consolidation worth considering. Even a few high-interest accounts can be enough to make a single, more predictable monthly payment feel like a major relief.
Personal Loans: The Traditional Route
Many people start with personal loans when looking to consolidate. They’re familiar, straightforward, and don’t require putting up collateral. A personal loan lets you combine your balances into a single payment over a set term (often a few years) with a fixed interest rate.
The downside? Those interest rates can be high, especially for unsecured loans, sometimes 10-25% or more. That can keep your monthly payment higher than you’d like, even if the payment is technically simpler to manage.
Home Equity as a Tool
For homeowners, the home itself can be a powerful resource. Equity is something many people underestimate: it’s built over years of mortgage payments and, in many cases, has grown significantly thanks to rising property values.
Traditional home equity loans and HELOCs can provide access to that value at lower interest rates than personal loans. But they also come with monthly obligations and sometimes variable interest rates, which can make budgeting tricky – especially if your goal is to reduce stress on your monthly finances.
Enter the Equity Sharing Home Loan
This is where an equity sharing home loan (ESHL) can offer a different approach.
Those offered by Unison are 10-year, interest-only loans, designed to provide access to a portion of your home’s equity while keeping monthly payments significantly lower than a traditional home equity loan. Instead of charging the higher rate to offset risk, the loan includes an equity sharing component. When the term ends (or sooner if you choose!), you repay the loan plus an agreed-to portion of your home’s appreciation.
The result is lower payments and more breathing room today, which can be especially useful if you’re juggling high-interest debt. Rather than stretching your monthly budget to make larger payments on a personal loan, an equity sharing home loan can reduce the pressure while helping you work toward long-term financial goals.
How It Compares to a Personal Loan
Both personal loans and equity sharing home loans let you consolidate debt and simplify payments. The key difference is in structure and flexibility:
- Personal loans: Typically shorter terms, fixed payments, higher interest rates. Good for homeowners who want to pay off debt quickly and don’t mind a tighter monthly budget.
- Equity sharing home loan: Lower monthly payments, longer term (but can be ended early), interest-only structure. Gives homeowners breathing room to recover financially, plan for savings, or invest in other priorities.
For someone who wants to reduce monthly strain without taking on new high-interest debt, the ESHL can be a practical alternative — particularly for those who already have home equity built up.
When an ESHL Might Make Sense
Equity sharing isn’t a fit for every homeowner, and that’s okay. It’s worth considering if:
- You have meaningful equity in your home and want to put it to productive use.
- You’re carrying high-interest credit cards or personal loans that make your monthly budget feel tight.
- You value flexibility and want to make space in your finances to focus on other priorities.
It’s less about a quick fix and more about giving yourself room to breathe, while still keeping your long-term goals in mind.
A Thoughtful Approach to Debt and Equity
Debt consolidation is a math problem, yes, but it’s also a lifestyle decision. The ultimate goal is predictability and control over your finances, and reducing stress, rather than adding another thing to worry about.
For homeowners, the ESHL offers a way to tap into equity responsibly, reduce monthly strain, and regain some peace of mind. That freedom can make a tangible difference in your day-to-day finances and in planning for what comes next — whether that’s saving, investing, or just feeling confident that you’re managing your obligations effectively.
If you're ready to explore how equity sharing can work for your family, start with a quick eligibility check or learn more at Unison.com.
Disclaimer: This sponsored content is for informational purposes only and is not financial, legal, tax, or lending advice. Unison’s Equity Sharing Home Loan is not a traditional loan: you receive cash today with low monthly option-fee-only payments (no principal or interest due monthly) in exchange for sharing a percentage of your home’s future value (appreciation or depreciation) when you sell, refinance, or at the end of the 10-year term. A single balloon payment is then due, which can be substantially higher than the cash received if your home appreciates significantly, and you generally repay the full original amount even if home value declines (limited downside protection may apply). Availability, rates, share percentages, and terms vary by state and individual situation; no savings or outcomes are guaranteed. Unison Mortgage Corp., NMLS #2574289. Consult independent financial, tax, and legal professionals and review full terms at unison.com before deciding.